DTN Midday Livestock Comments 04/27 11:43

DTN Midday Livestock Comments 04/27 11:43 Sharp Gains in Hog Futures Offset Cattle Losses Early pressure developed in the cattle market, drawing additional softness into the entire complex. Lean hog trade is pushing prices higher once again with strong nearby gains helping buyers focus on renewed trade interest. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong losses have developed through the cattle complex, led by sharp losses in live cattle futures, which are holding prices $1 to $1.50 per cwt lower at midday. Sharply lower boxed beef values have added even more concern about the ability to bring stability to the market. Corn prices are lower. May corn futures are 2 cents lower. Stock markets are mixed in light trade. The Dow Jones is 40 points higher while Nasdaq is down 38 points. LIVE CATTLE: Light support trickled into the live cattle market in the opening minutes of trade but since then it has been a defensive affair through the entire live cattle complex with triple-digit losses holding across the complex. The losses in futures markets and follow-through pressure in the beef values is leading to increased concerns of additional cash market and longer term pressure through the complex. Cash cattle markets are quiet midweek although a few bids are developing in the North at $119 through the morning. At this point it appears that trade will be delayed until the end of the week. Beef cut-outs at midday are lower, $2.71 lower (select) and down $2.68 per cwt (choice) with active movement of 116 total loads reported (52 loads of choice cuts, 20 loads of select cuts, 25 loads of trimmings, 19 loads of ground beef). FEEDER CATTLE: Losses in feeder cattle futures are driven by the combination of pressure in live cattle trade and deferred feeder cattle pressure. Late fall feeder cattle markets are holding the most aggressive losses, concerned about long term buyer interest even though these contracts are already trading at a $12 per cwt discount to spot-month contracts. The pressure through the market is expected to remain firm through the end of the session. LEAN HOGS: Sharp gains have redeveloped in the lean hog futures contracts through the morning. The focus between unwinding cattle hog spreads over the last several trading sessions has continued to develop with the aggressive morning pressure adding even more support to the lean hog complex as nearby contracts are holding gains near $2 per cwt. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.55 per cwt to $65.93 per cwt with the range from $59.00 to $68.50 per cwt on 3,575 head reported sold. Cash prices higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price gained $0.01 per cwt to $67.70 per cwt with the range from $66.50 to $68.00 per cwt on 620 head reported sold. The National Pork Plant Report reported 239 loads selling with prices up $1.11 per cwt. Lean hog index for 4/25 is at $68.48, up 0.42 with a projected two-day index of $69.06, up 0.58. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.